1 FCA Handbook COBS 19.5
2 Guide to Value for Members. The Pensions Regulator. July 2016. The assessment of member-borne costs and charges must be stated within the annual Chair’s statement for scheme members.
3 See: 21st Century Trusteeship. 10. Value for Members. 2021.
4 Additionally, the Department of Work and Pensions (DWP) has recently suggested that smaller (typically sub-£100m) DC schemes be required to conduct more in-depth VFM assessments than currently required and, on the basis of
this, to more robustly consider the merits of scheme consolidation. See: Consultation outcome of Impact assessment: improving outcomes for members of DC pension schemes. DWP. 21 June 2021.
5 The FCA’s seven assessment criteria comprise: comparable market rates, costs, comparable services, performance, quality of service, economies of scale, share classes. For more detail on each, see: A Review of UK Fund Assessment
of Value Reports (2019-20), CFA Society UK. January 2021. See the CTI 2020 Value Assessment Report at: https://www.columbiathreadneedle.co.uk/en/retl/value-assessment-report/
7 Almost 1,500 FCA-authorised asset managers operate in the UK – the 38 largest representing 74% of UK assets under management. See: Investment management data – Annual Report 2019/20. FCA. 16 September 2020.
8 See: https://www.fca.org.uk/news/statements/fund-managers-falling-short-assessing-value-their-funds. This review was conducted between July 2020 and May 2021. Separately, the CFA Society UK conducted an independent
study of 145 UK investment firms, accounting for funds with £1.3 trillion assets under management, during 2019-2020. See: CFA Society UK. January 2021. op.cit.
9 See: UK pension schemes waste billions on underperforming asset managers, study finds. Financial Times. Chris Flood. 2 July 2021. Please note that the underlying data supplied by ClearGlass, an independent data services
provider, has yet to be published.
10 See: Pensions Watch – issue 10 at https://www.columbiathreadneedle.co.uk/en/inst/insights/pensions-watch-issue-10/
11 Master Trust Default Fund Performance Review. Hymans Robertson. November 2020.
12 Revealed: The disparity in DC default value added. Dean Wetton. Professional Pensions. 7 July 2021.
13 This study was covered in Pensions Watch – issue 10 at https://www.columbiathreadneedle.co.uk/en/inst/insights/pensions-watch-issue-10/
14 These outcomes are based on a pensions saver 25 years from retirement, earning £25,000 per annum, with a starting pot of £1,000 and a monthly contribution of 8% of salary.
15 The charge cap of 0.75% per annum on the value of funds under management, is net of any administration and communications charges borne directly by DC members and excludes investment trading, or transactions, costs,
stamp duty and the costs of maintaining real assets such as infrastructure and real estate.
The research and analysis included on this website has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.